I am trying to run a logistic regression model. I have 4 numeric and 1 categorical variable which are significant. The categorical

variable has 8 levels. I want to bin this categorical variable into 3 levels based on the response. Can I do this?

For ex. The new variable has 3 levels "GOOD", "AVERAGE" and "BAD"

Level - GOOD

Level A has 25% positive response

Level D has 24% positive response

and Level E has 27% positive response

Level - AVERAGE

Level B has 14% positive response

Level F has 16% positive response

Level - BAD

Level C has 8% positive response

Level G has 7% positive response

and Level H has 5% positive response

Can I group the categorical variables into smaller bins based on the % positive response?

Please advice. Thank you in advance.